Are your policy limits still appropriate? Whether you took out the policy 20 years ago or four years ago, it makes sense to revisit the initial selections you made. You may now find that you need more or less insurance than you originally purchased. However, if you have too much coverage, don't cancel the policy without further analysis. The policy's return may make it a worthwhile investment on its own, or you may be able to convert to a smaller, paid-up policy.

Is the projected rate of return still competitive? If you have a cash-value insurance policy, ask the insurance company for an in-force illustration based on current dividends and interest rates. Even if you aren't satisfied with the projected return, don't replace the policy without careful analysis. Cash values typically accumulate at a faster rate after the first few years, and there may be tax consequences to surrendering the policy. Also, a policy change may require a medical examination and may incur fees and costs.

Is the insurance company financially sound? Check your insurance company's ratings to make sure its financial strength has not deteriorated.

Is the policy owned by the appropriate party? Changes in your estate needs may necessitate changes in the policy's ownership. For instance, you may want an irrevocable trust to own the policy so the proceeds won't be included in your taxable estate. Or business owners may find it more beneficial for the company to own the insurance policy. Consider all tax and estate factors before deciding who should own the policy.

Are your beneficiaries still appropriate? People's lives are constantly changing. Sons and daughters become adults, get married, have children. Family members die. Husbands and wives divorce. Such events have an impact on your life insurance beneficiaries, so you may want to change your beneficiaries due to changes in your personal situation. While it would seem unlikely that an insured would want his/her ex-spouse as a beneficiary, it is quite common for individuals to forget to update beneficiary designations. During your insurance policy review, make sure to review your designated beneficiaries.